On June 1, 2020, the Alma Corp. acquired a piece of land with a building on...

   

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On June 1, 2020, the Alma Corp. acquired a piece of land with a building on it for $1,400,000. The land was worth $250,000, and the building was worth $1,150,000. Alma paid for this purchase by making a $300,000 cash payment and signing a four-year, 10% mortgage note for the remainder. This mortgage note calls for mortgage payments to be made annually on June 1 of each year, beginning in 2021 Required: a. Using the PMT function in Excel, compute the dollar amount of the annual mortgage payment. b. Record the acquisition of this land and building on June 1, 2020. c. Prepare the complete effective - interest - rate mortgage note payment schedule for Alma in Excel or on paper. d. Make the necessary December 31, 2020, adjusting entry related to this mortgage note. e. Indicate how much Alma will report on its December 31, 2020 balance sheet as Mortgage Notes Payable in both the current liability and long-term liability sections. f. Make the necessary June 1, 2021 entry to record the first mortgage payment. On June 1, 2020, the Alma Corp. acquired a piece of land with a building on it for $1,400,000. The land was worth $250,000, and the building was worth $1,150,000. Alma paid for this purchase by making a $300,000 cash payment and signing a four-year, 10% mortgage note for the remainder. This mortgage note calls for mortgage payments to be made annually on June 1 of each year, beginning in 2021 Required: a. Using the PMT function in Excel, compute the dollar amount of the annual mortgage payment. b. Record the acquisition of this land and building on June 1, 2020. c. Prepare the complete effective - interest - rate mortgage note payment schedule for Alma in Excel or on paper. d. Make the necessary December 31, 2020, adjusting entry related to this mortgage note. e. Indicate how much Alma will report on its December 31, 2020 balance sheet as Mortgage Notes Payable in both the current liability and long-term liability sections. f. Make the necessary June 1, 2021 entry to record the first mortgage payment.

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